To ask how I can successfully ringfence this money? (Please don’t post for moral judgement)

[Jaalp]

I am a single parent to a 3 year old who will start school in the next two years. I have saved up a significant amount of money for schools fees. As a single parent I am constantly worried about job loss or anything else that could affect things. I am aware that if for some reason I was made redundant, for example, if I have more than a certain amount in savings then I would be expected to use this before claiming universal credit etc.

I have no intention of claiming universal credit but life happens and I have to be conscious of the potential things that could happen.

My question is, is there any way to put this money in an account for my child that would be protected as theirs and not counted in an assessment for universal credit etc should that ever happen?

Please don’t make this is a private school bashing thread or about playing the system etc. I’ve worked hard all my life and intend to continue to do so. Thanks.

Yes, she can. Very simply in fact, by using a trust fund.

You will be able to claim contributions based Universal Credit regardless of your savings for six months. Presumably you won't be out of work for longer than that? If you become long term unemployed or unable to work surely you it would be better to use the money to keep your house rather than pay school fees?

I'm sure no one will suggest you've not worked hard for your money but so do the majority of people and they're more worried about eating and heating. You're bound to get a bit of judgement for asking how you can get away with continuing your lifestyle while claiming benefits. And by the way that's absolutely no judgment towards people on UC as I've definitely been there.

The reality is OP, this isn't going to happen to you. Even if you lost your job tomorrow, you're going to find even a minimum wage job to cover your bills and you'd have the option to downsize or rent out your home, if you can't afford the mortgage on a minimum wage, without needing to claim Universal Credit. You've already got 200k saved which is going to be gaining interest and you can pay a couple of years fees in advance at a time, so you'd know you've still got a couple of years to save more of mortgage buffer, should anything happen in that time, without having to touch your school savings. Plus, like others have said, you can take out some income insurance going forwards. I'd recommend starting to save money away for your DD though in a savings account which can't be touched, so that she's got a deposit in the future.

Yes lol, and I'm sure that none of the people on this thread bleating about tax payers have never, ever done it 🤔

Eh? Do you not think that millions of parents work to the bone to just live from day to day? If you choose to pay for an education that is completely free in this country, then don't expect anyone to feel sorry for you. Or tell you how to squirrel that money away so that you can claim UC if you lose your job.

"No moral judgement" on the idea of someone stealing from the taxpayer by claiming benefits while hiding enough assets to pay for private school fees? Er, why not?

Other people will have other things they want to spend their money on which are equally important to them - what else, in your view, somehow shouldn't count and can be lied about?

I can only speak for me, but no, I haven’t, and I’ve taken a dim view of the tradespeople who’ve suggested it.

I know this is going to shock you, but some people do have moral integrity.

Well she can’t because the child trust fund scheme ended years ago and you can only add 9k a year going by todays limits into a JISA. She would only be able to cash £135k until the child reaches 18 and if her concerns are that she will lose her job she will still have £65k outstanding which would still massively take her over the threshold anyway. There is no legal way to stash that amount of money and be eligible for UC.

And yet here you are, trying to figure out precisely how to do that. The best thing for your child would be for their mother to not set an example of entitlement.

You don't seem to understand what a trust fund is.

Ha ha ha. Yes I'm sure that everybody on this thread has never paid cash in hand for a cleaner, or a painter, or at a garage, or any other tradesperson, or has done a bit of cash in hand work themselves. Done some cleaning, baked some cakes, did some care work, all under the counter. Never happened!

Okay well in that case, would you like to elaborate for those that don’t? A google search and information from the GOV website tells you that they no longer exist and were replaced by Junior ISAs that have the conditions I stated listed? Not being goady, I’m genuinely interested.

Huh? Who said anything about the child trust fund scheme? That’s irrelevant.

She can legally put the money in a trust with her child named as the sole beneficiary. The money would cease to be hers, and would not be taken into account by UC.

It's perfectly legal to pay cash to legally self-employed people if they give you an invoice or receipt. I think you are telling on yourself.

I see what you mean, thanks. I stand corrected.

This thread makes me angry. It's so wrong. I took an oath saying I would die for this country when I joined the military, have worked and paid taxes for my whole adult life. I am also a single mum with £17k savings which I was saving towards a house deposit. I now have no choice but to use these savings to get through maternity leave as I am not entitled to UC and cannot afford nursery fees until the free hours kick in. I will then work full time and continue paying taxes for potentially another 40 years. I was not eligible for help when I needed it the most, why do you think your situation is any different? Being a single mum has nothing to do with it. If you can't afford private school, then don't send your child to private school.

Trust Funds are a legal instrument in which money can be placed for a child that pays out regularly or for specific things specified in advance or for things that the Trustees agree too e.g. school fees, trips etc etc. A savings account set up in a childs name with one named person over 18 is a type of Trust - a bare Trust and you can withdraw money from it to spend on the child. HOWEVER the government is wise to this and so it wouldn't work to hide monies for school fees. I think when they are doing the assessment for the benefits they also look at savings accounts of the children and there is a limit - something like 4k rings a bell but I don't have that info imm. to hand

The Child Trust Fund scheme was a savings scheme set up by the government for monies to be paid into a type of Trust that pays out at 18 yrs old. The scheme is no longer open but still exists if it was opened previously for a child.

The second is not what is being talked about here.

Some sort of Trust fund for school fees may work if done well inadvance etc often this is done by for e.g. grandparents

Thank you for taking the time to explain that.

I don’t know much about it but would giving it all to say your mum/sister or whatever now work?

Then they can use it to pay school fees when it’s time. Then if at some stage you claim UC the money isn’t yours.

No it isn't. Housing is a necessity. By paying off a mortgage early when you can afford it, you are putting yourself in a position where you will not be at risk of ending up homeless or potentially having to pay more in rent than your current mortgage costs.

Private school is not a necessity. You are entitled to use money you have when you can afford it. If you can't afford it, you can't pay for it. If you need the state to step in to pay your living costs, you can't afford private school.

That's fraud as well.

I’ve done none of that. As I said, I can only speak for me, but I’m not arrogant enough to assume I’m the only one, either.

You can earn up to £1k self-employed pa before paying tax. If you pay someone else cash in hand, it's up to them to declare their income.

Is it? So if you apply for UC and you used to have savings but gave it away years ago that would be fraud? Surely people give money to relatives all the time?

Wont ever matter to me since I don’t send mine to school, claim benefits or have any money…

I definitely know people who give large amounts of money to family and buy big gifts or pay each others school fees and stuff… maybe they all have dodgy accountants.